Eurozone inflation eased by more than expected in May, reflecting dips in Germany and Spain among others and supporting European Central Bank policymakers wanting only slow adjustments to rates and monetary stimulus.

Inflation in the 19 countries sharing the euro slipped to 1.4 per cent, its lowest level since December, from 1.9 per cent year-on-year in April, statistics agency Eurostat said yesterday. This was slightly below expectations in a Reuters poll of 1.5 per cent.

The inflation measure which excludes the volatile energy and unprocessed food prices also fell to one per cent from 1.2 per cent, in line with expectations.

Inflation in the 19 countries sharing the euro slipped to 1.4 per cent, its lowest level since December

The ECB, which meets next week, wants to keep inflation below, but close to two per cent over the medium term and has been buying €60 billion worth of bonds per month to inject more cash into the economy and drive price growth closer to its target.

Reuters reported on Tuesday that ECB policymakers were set to take a more positive view of the economy when they meet on June 8 and will even discuss dropping some of their pledges to ramp up stimulus if needed.

Having fought off the threat of deflation with years of extraordinary stimulus, the debate within the ECB is shifting to the pace of normalisation, pitting doves who want incremental changes against conservatives who fear that the ECB could miss its cue, forcing more abrupt moves later.

Capital Economics European Economist Jack Allen said the May fall of inflation would not stop the ECB from changing its guidance.